Algorand (ALGO) is one of the cryptocurrencies investors need to watch out for in February, according to the analyst Filip L.
Thus Filip points out in a new analysis that ALGO is starting its uptrend by forming a triangle with the upside already tested twice in the past few days and the upside at $1.10 tested twice in a row for resistance.
“Expect the triangle to complete next week with an even earlier bullish breakout if global markets can shake off yesterday’s inflation concerns and hit $1.20 high,” he said.
Therefore, according to him, Algorand’s bulls are in a comfortable position after catching the different moments of decline, believing in the potential of cryptocurrency aimed at the smart contract ecosystem.
Thus, he highlights that the crypto price offers the bulls two scenarios: the first, a slow grind and the conclusion of the triangle at the end of next week, with a squeeze against the $1.10 baseline and then a pump. above $1.20.
“The second, a faster process, once the global indices are back to green. Whatever the scenario, the price target is set at $1.20, with the monthly pivot just a few ticks from January’s S1 support, making it a vital zone for resistance.
However, he points out that a false breakout could also trigger a negative move in the crypto asset, which would then tip to a low and thus invalidate the ascending triangle thesis.
“Expect another push from the bears at this level to set the stage for a solid breakout of the triangle to the downside. The loss could result in a 15% drop to $0.80, which is in line with the start of the triangle and the January S2 support.”